SECTION A

$[40$ MARKS$]$

Read the case study below and answer ALL the questions in this section.

The Expansion of South African Breweries $($SAB$)$ into Global Markets

South African Breweries $($SAB$),$ originaly founded in $1895$ in Johannesburg, was one of the largest and most successful companies in South Atrica. Over time, it grow from a local brewery to a key player in the international beverage industry. ulimataly becoming part of the global conglomerate Anheuser$-$Busch inBev $($AB InBev$).$

By expanding its operations into emerging markets across Alrica, Asia, and Latin America, SAB leveraged its market expenence in developing economies. Its strategies for growth involved targeting regions with untapped potential, aligning with iocal tastes, and navigating regulatory chalenges in various countries. SAB leveraged South Africa's unique market position, regional economic agreements, and the rising tide of globalization to establish a network of operations in varcus countries. The company's decisica to go international refected its belet in maximizing economies of scale and erpliciting growth oppormuities beyond South Africa's borders. Globalisation allowed SAB to tap into diverse markets, but $4$ aiso introduced the company to complex competitive landscapes and diverse regulatory environments

However, as SAB expanded, if faced both benefits and challenges, ranging from trade policies and tariffs to currency fuctuations and local competition. Moreover, the company had to adapt to different government policies, such as restricions on foreign investment, local scurcing requirements, and product safety standards. In its internationa ventures, SAB encountered difterent trade policies and regulatory frameworks. For instanoe, in Inda, where alochol regulation is handied at the state level, the company faced challenges such as high tariffs, restrictive laws on foreign ownership, and advertisement restrictions. In some African countries. SAB faced government requirements to engage in local sourcing and employ local workers, which impacted its cost structure and operations. Additionally. SAB needed to comply with import$-$export policies and respond to protectionist measures in some markets, where local govemments aimed to protect domestic breweries.

Source: $q,$

Questions $1$ and $2$ are based on the case study above. Use relevant examples from the case study to substantiate your antwers.

QUESTION $1$

$(20$ Marks$)$

With the aid of relevant and practical examples from the case stady, critcally discuss the roll of gicbalization in SAB's international expansion.

QUESTION $2$

$(20)$ Marks$)$

Discuss how trade poicies and goremment reguations in South Atica and abroad have influenced SABF international eapansion. Provide specific examples of policies that could ether seppot or restrict such growh.